Investment column: Bunzl racks up paper profits
Wednesday 02 September 1998
Bunzl has not been immune to these factors. Although the group does not make pulp or basic plastics, they are used heavily in its products. And falling input prices have forced Bunzl to cut its own prices. In the first half of the year, the group reckons that the combined effects of the strong pound and price deflation wiped more than 6 per cent off revenues.
As a result, Bunzl did well to keep underlying revenues and profits more or less flat. Meanwhile, the benefits of recent acquisitions - Bunzl has spent pounds 165m in the past 12 months - helped boost operating profits by 16 per cent to pounds 66.7m.
In this climate the chairman, Anthony Habgood, is reluctant to make predictions. But pulp and plastic prices should stabilise, so Bunzl will no longer have to run to stand still. Meanwhile, with one acquisition still to be fully integrated and plenty of scope for bolt-on deals - profits covered its interest bill 15 times in the first half - Bunzl should keep profits rising.
The shares - which shed 8p to 228.5p yesterday amid the general market shakeout - now stand on a multiple of just 12 times expected full-year earnings.
Bunzl will never be a go-go stock, but in an uncertain market investors will appreciate its solid fundamentals.
Jo from Northern Ireland was less than impressed by Russell Brand's attempt to stage a publicity stunt
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
Shock poll shows voters believe Ukip is to the left of the Tories
New era of cheap oil 'will destroy green revolution'
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Ukip founder Alan Sked and Nigel Farage 'begged Enoch Powell to stand as a candidate'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
iJobs Money & Business
£40000 - £470000 per annum + bonus: Ashdown Group: Java Developer / J2EE Devel...
£45000 - £55000 per annum + Benefits: Ashdown Group: An exciting opportunity h...
$125 - $175 per annum: Carlton Senior Appointments: Senior Wealth Manager In...
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...